Buying a home in the Okanagan is one of the most significant financial decisions you will make, and the process looks different in 2026 than it did even a few years ago. Interest rates have shifted, affordability expectations have changed, and the Kelowna market has matured in ways that reward buyers who come prepared. Whether you are purchasing your first property or making a move up, this guide walks you through what you actually need to know before you sign anything. If you want a deeper look at the full process before reading on, the Buying page is a good place to start.
Who Is Mark Drelich
I am a licensed REALTOR with Engel and Volkers Okanagan, based out of Kelowna. My background is in communication and I spent years in radio before moving into real estate. That background shapes how I work with clients: I explain things clearly, I communicate constantly, and I do not disappear after you sign. My focus is the Central Okanagan, from Lower Mission and Glenmore to Upper Mission, Black Mountain, and West Kelowna. If you are buying here, I know this market in detail. You can learn more on the About page or get in touch directly through the Contact page.
Understanding Your Costs
Before you start viewing homes, you need a realistic picture of what buying actually costs beyond the purchase price. Here is what to budget for in 2026. For a more detailed breakdown of what catches buyers off guard, read the companion article on hidden fees when buying an Okanagan home.
Down Payment
The minimum down payment in Canada is 5% on homes up to $500,000, and 10% on the portion between $500,000 and $1,500,000. For any home priced at $1,500,000 or more, a minimum of 20% is required. Most Kelowna detached homes now fall in the $700,000 to $1,200,000 range, so plan accordingly. If you are still building your down payment, the Kelowna real estate down payment guide covers saving strategies, gift rules, and the First Home Savings Account in detail.
Mortgage Default Insurance
If your down payment is less than 20%, you are required to carry mortgage default insurance through CMHC or a private insurer. The premium is added to your mortgage and ranges from 2.8% to 4% of the loan amount depending on your down payment size.
Property Transfer Tax
British Columbia charges a Property Transfer Tax on every purchase. The rate is 1% on the first $200,000, 2% on the portion between $200,000 and $2,000,000, and 3% on anything above that. First-time buyers may qualify for a full or partial exemption on homes under $835,000 as of 2026. For a full picture of provincial and municipal tax obligations, see the article on taxes on your Okanagan property.
Legal Fees
Budget approximately $1,500 to $2,500 for a real estate lawyer or notary to handle title transfer, mortgage registration, and closing documents.
Home Inspection
A professional home inspection typically costs between $500 and $700 in the Okanagan. It is not optional if you want to buy with confidence. Inspections can reveal issues that change the terms of your offer or save you from a poor purchase entirely.
Title Insurance
Most lenders require title insurance. The cost is a one-time premium of roughly $200 to $300 and protects against title defects, fraud, and survey issues.
Adjustments on Closing
The seller will have prepaid some costs, such as property taxes or strata fees, and you will owe them a prorated portion at closing. This is called an adjustment and is calculated by your lawyer. Budget a few hundred to a few thousand dollars depending on the time of year you close. If you are buying into a strata building, adjustments also apply to strata fees, and it is worth reading the Okanagan strata guide before making an offer on a condo or townhome.
GST on New Homes
If you are buying a brand new home or a substantially renovated property, GST applies at 5% of the purchase price. A partial rebate is available if the home will be your primary residence and the price is below a certain threshold.
The Buying Process Step by Step
Step 1: Get Pre-Approved
A mortgage pre-approval tells you exactly what you can borrow and locks in a rate for 90 to 120 days. This is not the same as pre-qualification. You need to provide income documentation, employment letters, and bank statements. Do this before you look at a single property. The Buy Smart in BC guide covers the pre-approval process in more detail alongside the broader framework for buying in this province.
Step 2: Define What You Are Looking For
Be specific about your non-negotiables versus your wish list. Location, number of bedrooms, yard size, proximity to schools, and suite potential are all factors worth ranking before you start. Buyers who are unclear on their priorities waste time and often end up making emotional decisions under pressure. Use the Property Search to get a feel for what is currently available at different price points before your first conversation.
Step 3: Start Viewing Properties
I will set up a custom search based on your criteria and send you listings as they come to market. In a competitive Kelowna market, properties in desirable neighbourhoods move quickly, so responsiveness matters.
Step 4: Make an Offer
When you find the right property, I will prepare a Contract of Purchase and Sale. We will decide on price, subject conditions, and a completion date. Subjects typically include financing approval, a satisfactory home inspection, and review of title or strata documents. If you are ever curious what happens when a property does not sell conventionally, the guide to buying foreclosed homes in Kelowna is worth reading as well.
Step 5: Subject Removal Period
This is your due diligence window, usually 5 to 10 days. You complete the home inspection, confirm your mortgage, and review any relevant documents. If something material comes up, you can renegotiate or walk away with your deposit returned. If everything checks out, you remove subjects and the deal becomes firm.
Step 6: Deposit
Once subjects are removed, your deposit is due, typically within 24 hours. This is usually 5% of the purchase price and is held in trust until completion.
Step 7: Legal Review and Closing
Your lawyer or notary receives the purchase documents, registers the title in your name, and facilitates the transfer of funds. You will sign closing documents a day or two before the completion date.
Step 8: Completion and Possession
On the completion date, funds are transferred and the title changes hands. On the possession date, usually the same day or the day after, you receive the keys.
Kelowna Neighbourhoods Worth Knowing
The Okanagan is not a single market. Prices, property types, and lifestyle vary significantly by area. If you are bringing pets along for the move, the dog owner’s guide to Kelowna is a genuinely useful resource for understanding which neighbourhoods have the best parks, trails, and green space.
Lower Mission is one of the most established and desirable areas in Kelowna, known for its proximity to Okanagan Lake, excellent schools, and walkable streets. It commands a price premium.
Upper Mission offers newer construction, lake views, and quiet residential streets. Families are drawn here for the schools and the newer infrastructure.
Black Mountain sits at a higher elevation on the east side of the city and offers a mix of detached homes at relatively accessible price points compared to the Mission neighbourhoods.
Glenmore is a central, practical neighbourhood with good access to downtown and UBCO. It attracts a wide range of buyers including investors.
West Kelowna offers lower entry points than Kelowna proper while still providing lake access and Okanagan lifestyle. The Westbank First Nation land lease situation is a factor that requires careful understanding before purchasing in certain areas.
Lake Country to the north is attracting buyers priced out of Kelowna who still want proximity to the lake and a quieter pace.
If you are considering a more affordable or unconventional entry point into Okanagan homeownership, it is also worth reading about mobile homes in the Okanagan, which covers manufactured homes, park pads, and what to know before buying one.
The Okanagan Market in 2026
After several years of rapid price appreciation followed by a correction in 2022 and 2023, the Kelowna market has stabilized. Interest rates that peaked in late 2023 have come down modestly, bringing some buyers back off the sidelines. Inventory has improved from the historic lows of 2021 and 2022, which means buyers have more negotiating room than they did three years ago, particularly in the condo and townhome segments.
That said, well-priced detached homes in Lower Mission, Upper Mission, and Black Mountain still move quickly when they are listed at market value. The days of bidding wars on every listing are behind us, but do not assume every property is negotiable or that time is always on your side.
The advice I give every buyer in 2026: know your number, move decisively when you find the right property, and do not let perfect be the enemy of good. If you have questions that are not covered here, the FAQ page addresses the most common ones, and the Resources page has additional tools to help you navigate the process.
Who Pays My Commission
Buyers in Canada typically do not pay their real estate agent directly. The seller pays the total commission, which is split between the listing agent and the buyer’s agent. In most transactions, working with me costs you nothing out of pocket, and having professional representation protects your interests throughout the entire process. If you are curious what it looks like on the other side of the transaction, the article on selling your home without a Kelowna real estate agent explains what sellers take on when they go unrepresented and why buyer representation matters just as much.
Ready to Get Started
If you are thinking about buying in Kelowna or the Central Okanagan in 2026, reach out and we can talk through your situation before you do anything else. There is no cost and no obligation to that conversation, and it will save you time and money regardless of when you decide to move forward.
Contact Mark Drelich at mark@markdrelich.com or call 1 (250) 863-7700.
Categorised in: Buying
